PPF stands for Public Provident Fund
Any Citizen of India can open PPF account. The interest rates on PPF account is decided by the government of India in each quarter. Currently PPF interest rate is 7.1 %. By the view of Tax PPF investments comes under "EEE" criteria. That makes is best tax free investment.
Want to know how much about PPF amount of interests earned over the period or how your investment grows over the years, final maturity amount etc. Here is a online PPF calculator to Calculate the respective amount with variable time and interest rates. PPF is a scheme used for Long term investment and tax saving No tax is applicable on the amount invested under PPF and on interest earn.
What is Public Provident Fund (PPF) ?
PPF or Public Provident Fund is a Government of India long term small savings cum tax saving scheme. The PPF account provides fixed returns to investors at rates that are decided by the Indian Govt. in Each Financial Quarter and features a maturity of 15+ years. India’s PPF scheme was launched in 1968 with the aim of promote small savings from every Indian to help secure the financial future.
PPF is EEE ?
PPF investments are tax free by three way. Investment is Tax Free, Interest Earned on PPF is Tax Free and finally when your PPF account is mature you can take your saving also tax free. EEE Means Exempted, Exempted and Exempted.
Can I take Loan against PPF ?
The option of loan against PPF is available from the 3rd year calculated from the account opening date till the end of the 6th year of the PPF account. The amount that can be availed as a loan is linked to the total value of PPF deposits plus any accrued interest.
The amount that be availed as loan against PPF as calculated by the PPF return calculator is equal to 25% of the PPF balance in the account for the year preceding the year of PPF loan application. For example, if you apply for a PPF account in March 2022, the qualifying amount will be calculated based on the closing balance in March 2021.
- Current interest rate : 7.1 % (For April 2023 to June 2023) - Revised in Each Quarter.
- Duration of scheme : 15 years (After completion of 15 years, you can extend in 5-5 years of block, any number of times)
- Minimum deposit amount (per year) : 500
- Maximum deposit amount (per year) : 1,50,000 (As per limit defined in section 80C)
- Number of installments every year : 1 (Min) to 12 (Max)
- Number of accounts one can open : Only One
- Lock-in period : 15 years (partial withdrawals can be made from the sixth year)
- Extension of PPF Account : After the maturity period (15 years), it can be extended for a period of 5 years multiple times.
- Tax savings (investment) : under section 80C (upto 1.5 Lac as on 31 march 2019 and onwards)
- Tax savings (interest earned and final amount) : fully exempted from wealth tax
PPF Interest Rate History
PPF interest rates are reviewed and revised in each quarter by India Govt. PPF Interest History -You can check previous Year's PPF Interest rates.
|Period||PPF Interest Rates|
|1st April, 2020 onwards||7.1%|
|1st July, 2019 onwards||7.9%|
|1st April, 2019 - 30 June, 2019||8%|
|1st Jan, 2019 - 31st March, 2019||8%|
|1st October, 2018 - 31st Dec, 2018||8%|
|1st July, 2018 – 30th September, 2018||7.6%|
|1st April, 2018 - 30th June, 2018||7.6%|
|27th Dec 2017 – 31st March, 2018||7.6%|
|01st October 2017 to 26th Dec 2017||7.8%|
|01st July 2017 to 30th Sep 2017||7.8%|
|01st April 2017 to 30th June 2017||7.9%|
|01st January 2017 to 31st March 2017||8%|
|01st October 2016 to 31st Dec 2016||8%|
|01st July 2016 to 30th Sep 2016||8.1%|
|01st April 2016 to 30th June 2016||8.1%|
|01st April 2015 to 31st Mar 2016||8.7%|
|01st April 2014 to 31st Mar 2015||8.7%|
|01st Apr 2013 to 31st Mar 2014||8.7%|
|01st Apr 2012 to 31st Mar 2013||8.8%|
|01st Dec 2011 to 31st Dec 2012||8.6%|
|01st Mar 2003 to 30th Nov 2011||8%|
|01st Mar 2002 to 28th Feb 2003||9%|
|01st Mar 2001 to 28th Feb 2002||9.5%|
|15th Jan 2000 to 28th Feb 2001||11%|
|01st Apr 1986 to 14th Jan 2000||12%|